MORTGAGE RELIEF

Otago Daily Times, Issue 22024, 5 August 1933, Page 14

MORTGAGE RELIEF

SUPERANNUITANTS CONCERNED. The fact that the legislation adopted for the relief of mortgagors has adversely affected the State superannuation funds is the subject of a complaint by the executive of the New Zealand Educational Institute, embodied in a letter to the Acting Prime Minister (Mr J. G. Coates). The letter states that “ the bad condition of the funds has recently been accentuated by the anplication of the legislation granting reduction, suspension, or remission of interest to mortgagors.” It is pointed out that out of the Teachers’ Superannuation Fund the sum of £884,345 was, on January 31, 1932, invested in land mortgages. The letter adds: “It seems a reasonable request to make that power should be given to the Supreme Court to deal with stock mortgages at the same time as it deals with land mortgages, and in the same way so far as that is applicable. It would thus be possible, and equitable, to apportion the losses between the patries concerned. Failing some measure of this kind, it seems evident that no option will be left to the Superannuation Hoard but to proceed to the drastic step of foreclosure in order to preserve as much as possible of the fund entrusted’ to its care. It will be obvious to you that such procedure is to be avoided if at all possible,”